today announced that it has sold its first sqidlite system in its diagnostic business segment. Management believes that this is the first of multiple systems that it will sell to this customer to run an estimated 1 million samples annually to test for infections in human blood in the US market.
“At SQI, we believe that our technology benefits our diagnostic and pharmaceutical customers by generating superior test results in less time and at a substantially reduced cost. Our business model is focused on the long term recurring sale of technologically advanced multiplexed test kits that will allow our customers to achieve these substantial benefits,” said Andrew Morris CEO of SQI Diagnostics. “In order to be successful in generating long term recurring revenue streams from the sale of our multiplexed test kits, we need to first sell our sqidlite systems and this first sale in our diagnostics business segment is an important milestone for us."
SQI’s relationship with this diagnostic customer began over a year ago with a contract to automate their DNA-based pathogen detection assays. Since then we have been working to automate and scale-up the manufacturing of an 80-plex test kit to detect infections in human blood. This 80-plex test creates large saving for the customer because it eliminates the work needed to develop, run, and purchase materials for 80 separate single tests.
Current technologies for diagnosing infections in human blood typically takes multiple days using microbiology (petri-dish-like tests) or “real-time” DNA based tests that are typically many multiples of the cost of microbiology tests. The value-drivers of this 80-plex product, being developed under contract at SQI, are to provide results in time-frames that are days faster than microbiology tests and that can be deployed at a target cost of delivery that is much less than “real-time” DNA-based tests.
This is our first sqidlite sale in our diagnostic business segment.
In our pharma business segment, the Company has one sqidlite system being commercially operated at a customer to whom we have recently sold and delivered our first substantial commercial order of test kits. We previously announced signing a multi-year, multi-product agreement with this customer following the development and evaluation of multiple custom products designed to run on the sqidlite system. We believe the success with the completed evaluation will result in the imminent sale of this sqidlite.
We have completed an additional agreement with another global pharma customer to install a sqidlite system for a 60 day evaluation period that follows the development of two custom, multiplexed test kit products. This system is currently scheduled for delivery to this customer in May, 2016.
During fiscal 2015 and 2016 we have also sold a limited number of kits that were run on sqidlite systems at SQI and that were done in conjunction with separate development contracts.
About SQI Diagnostics
SQI Diagnostics is a life sciences and diagnostics company that develops clinical grade multiplexed microarray and molecular assays run on its automated instrumentation for the pharmaceutical research, animal health, and clinical diagnostics markets. SQI develops custom research and diagnostic assays that are multiplexed; meaning the simplification, consolidation and automation of many individual tests into one. This increases sample throughput, reduces time, cost and chance for human error, and provides excellent data quality. For more information, please visit sqidiagnostics.com.
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This news release contains certain forward-looking statements, including, without limitation, statements containing the words “will”, “expects”, “intends” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to risks related to agreements and future agreements to sell our products, the failure to obtain necessary regulatory approvals, general economic and market segment conditions, and international risk and currency exchange, the success of our Diagnostic Tools and Services business and our intent to build near-term revenue streams from this business, the acceleration of our revenue ramp, general economic and market segment conditions, competitor activity, technology changes and regulatory approvals. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.